EPF yet to appoint any investment banks as advisers on bank mergers

  • Banking
  • Tuesday, 15 Jul 2014

KUALA LUMPUR: The Employees Provident Fund (EPF) has yet to hire any investment banks (IBs) to advise it on the proposed three-way merger of CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB).

“We would like to clarify that at this point of time, we have not appointed any third party to advise the EPF for this proposed merger,” EPF said in a statement.

Earlier, a foreign newswire reported that the pension fund had hired Deutsche Bank to advise the fund while RHB Capital had hired Credit Suisse for the proposed merger.

Last week, CIMB, RHB Capital and MBSB said they had obtained approval from Bank Negara to begin merger talks to create a mega Islamic bank.

The three parties have entered into a 90-day exclusivity agreement to negotiate and finalise pricing, structure, and other relevant terms and conditions for a proposed merger of the three entities and the creation of a mega-Islamic bank.

The EPF has a 64.73% stake in MBSB and is the second largest shareholder in CIMB with 14.46% after Khazanah Nasional Bhd.

StarBizWeek reported that the exercise would possibly involve a share swap between CIMB and RHB Cap at a book value of 1.75 times and an outright buyout of MBSB.

The eventual merger will see the EPF emerge as the largest shareholder in the mega bank, with a stake estimated to be more than 25%.

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Business , Banking , EPF , CIMB , RHB Capital , MBSB


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